Storm continues in Wall Street as DOW hints at a 280-point drop

Wall Street

As the turbulent week is about to end for the stock market, Friday morning trends weren’t at all positive for the major indices. At 4.00 am, the DOW Jones futures indicated a 241-points drop and it further paves the way for at least 270 points drop in the index when the market opens today. On the other hand, S&P 500 and Nasdaq 100 futures also hint at a possible drop at the opening hour of the US Stock market. What is more alarming is that the 10-year treasury is headed towards further dip!

Post the unexpected rate cut from the Fed, the treasury yields kept dropping below and touched record lows in this period. The rate cut was the first such move by the Fed post the financial crisis in the year 2008. According to Gundlach, the Fed does such rate cuts in panic and also follows it with a second rate cut soon enough. The market awaits a second rate cut from the Fed in two weeks and it will create new stirs in the market. The DOW 30 swung 1000 points up and down in 4 days and this aptly reflects the volatility of the market. 

Create your watchlist

Now that the market is in a correction phase, it is advised that investors do not buy stocks right now and rather they create their watchlist. This watchlist will help them to decide on stocks that deserve their money when the market regains stability after a certain time. Here are the top stocks that must be in your watchlist for the season-

  • Apple (AAPL)
  • Tesla (TSLA)
  • Alibaba (BABA)
  • Nvidia (NVDA)
  • Shopify (SHOP)
  • SolarEdge Technologies (SEDG)

Keep a track of the RS line as the stocks that have strong and rising RS line during this phase of market correction are the possible lead gainers in the next stock rally. While all these stocks listed are from different industries, yet they probably have the best potential to offer your portfolio a boost in the coming days.

Coronavirus update

The total count of patients suffering from the virus is now at 98,000 and will soon touch 1,00,000. On the other hand, the count of the dead has risen substantially to 3300 as of now. However, there is positive news that most of the infected have recovered and got rid of the virus recently and the number of new cases in China has gone down lately.